Kyiv, Nesterivsky prov., 3/5
phone/fax (380-44) 272-58-77

Ukrhafta JSC pursues a consistent policy aimed at meeting the interests of its shareholders as well as the state. Therefore, the Company's priority is to implement the long-term development plan, which envisages effective utilization of available resources, highly professional work force, and further increase of the share market value.

Formation of a vertically integrated company is the goal of Ukrnafta's strategic development aimed at improvement of the Company's market competitiveness and optimization of its organizational and production structure, which is necessary for more efficient utilization of financial resources, tangible assets and labor.

During 2004 the management was taking actions to phase in the next stage of transformation into a vertically integrated company by establishing a network of petroleum stations.

The formation of vertically integrated company will favor:

• broadening of the company's products diversity;
• Company's lower dependence on the world oil price fluctuations;
• rise in efficiency of the Company's units activities thanks to implementation of total quality management strategy;
• concentration of financial flows and flows of commodities;
• reduction of costs due to economies of scale;
• improvement of the Company's competitive position in the domestic market

Rational utilization of the Company's unique position in the market, its transformation into vertically integrated oil company (the first in Ukraine) will ensure the balance of interests of the state, regions and each shareholder of the Company and lay the foundation of the energy safely of Ukraine.

Our Vision

We view Ukrnafta JSC as a vertically integrated company which supplies vital energy products and services, and is highly competitive in the market due to:

• stable production;
• introduction of new technologies;
• highly professional team;
• thoughtful environmental protection policy.

In the nearest future (in 2005) the Company plans to:

• increase oil with condensate production by 1.5% (44.4 thousand tons) compared to 2004;
• increase liquefied gas production by 0.4% (0.58 thousand tons) compared to 2004;
• increase drilling by 14.9% (24.58 thousand km.) compared to 2004;
• to preserve the volumes of natural gas production and the quantity of new wells put into operations at the level of 2004

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